StatPro ups spending to support SaaS model

Highlights

· Trading in H1 2013 in line with market expectations

· StatPro Revolution annualised recurring revenue increased by approximately 50% in H1 2013 to £2.4 million (December 2012: £1.6 million*)

· StatPro Revolution client numbers increased to 220 as at end June 2013 (December 2012: 156)

· StatPro Revolution related recurring revenue** increased to £6.4 million and 24% of total software revenue (December 2012: £4.0 million /16%)

· New features released in H1 2013 include a premium subscription UCITS IV*** module

· Resilient renewals for StatPro Seven in H1 2013

· StatPro R+ (cloud replacement for StatPro Seven) beta launch on track for July 2013

* at constant currency

** defined as the total recurring revenue from clients whose subscription includes StatPro Revolution

*** UCITS IV refers to the European Directive related to Undertakings for Collective Investment in Transferable Securities

Trading update

Revenue and profits for H1 2013 are in line with market expectations, with an increased rate of new business signed for StatPro Revolution. As announced previously, and after raising additional capital in November 2012, we have increased our spending commitments in line with our cloud strategy. Areas in which we are investing include more sales people and marketing activities to promote our cloud solutions, R&D to increase the rate of development of new features, and strengthening of the client services team to support our existing and new clients. Group net cash was approximately £2.8 million at 30 June 2013 (June 2012: net debt £3.9 million).

StatPro Revolution

Sales of StatPro Revolution, our cloud-based portfolio analysis service, continue to grow well and in line with expectations. By the end of the half, client numbers had reached 220 and recurring revenue had grown by approximately 50% to £2.4 million within the six months. StatPro Revolution is being used actively all over the world and importanorld and importantly, more and more existing clients of our traditional StatPro Seven software are also adopting StatPro Revolution in addition to the StatPro Seven service, contributing to an increase in StatPro Revolution related revenue to £6.4 million (December 2012: £4.0 million). This demonstrates that clients are increasingly receptive to the compelling advantages that come with cloud-based solutions, including improved productivity and quality of service, and gives us confidence in our migration strategy as we roll out the StatPro Seven cloud replacement service. Our sales pipeline continues to grow and we look forward to building upon this success and momentum.

In May 2013 we released the UCITS IV module which has been very positively received by the industry, with several early sales secured between launch in May and the end of June. We believe the increase in regulations and the addition of this feature will help generate further sales of StatPro Revolution.

StatPro provides StatPro Revolution to 26 fund administrator partners around the world (December 2012: 21). Fund administrators represent a key market for StatPro as they can act as distributors of the StatPro Revolution service.

StatPro Seven and StatPro R+

In 2012 we made the transition to promoting only our cloud service (StatPro Revolution). In line with expectations, there was a lower level of new business for StatPro Seven during H1 2013. Our renewal rates remain high and are currently at around 91% (calculated on a rolling twelve-month basis). Development of StatPro R+, the cloud-based replacement for StatPro Seven clients, is progressing well with the launch of the first module as a beta later this month.

SiSoft

The Board has agreed an out of court settlement with representatives of 55% of the non-controlling shareholders in SiSoft Sarl ('SiSoft') following a previously announced legal dispute over the valuation of contingent consideration. Further detail is provided in a separate RNS announcement released today.

Outlook

We believe that the service we offer through our cloud-based solution StatPro Revolution provides a compelling story that meets client demands for greater transparency, improved reporting to satisfy new regulations, and acts as a selling tool as well as being great value for money.

StatPro made the strategic decision in 2012 to switch to cloud services because of the tremendous growth potential available with this new technology. With a large client base and high levels of recurring revenue, we are able to make a significant level of investment in transforming our business to a pure cloud technology business, while continuing to generate a good margin level and operating cash flow.

Our continuing progress gives the Board confidence in a successful outcome for the year.

Justin Wheatley, Chief Executive, commented: "StatPro Revolution has grown in sales and clients every month and the message we bring to the market continues to spread further and further afield. StatPro Revolution provides a better, more flexible and lower cost way for fund managers to meet investor demands for transparency, regulation and generating new business. As markets show encouraging signs of recovery, we look forward to the rest of the year and beyond."

Notice of results
The Group expects to report its interim results for the six months ended 30 June 2013 on Wednesday, 31 July 2013.